Wondering what life insurance costs? It’s personal - your age, health, and cover size set the tab. The UK average is £38/month for £152,000 cover Forbes Advisor UK, 2024. Spirit Cover matches that, then ups the game with free trusts and perks like Global Treatment. No mystery - just value. Let’s dive into it!
The Price Drivers
Several factors influence the cost of life insurance in the UK:
- Age: Premiums typically increase with age. For example, a 30-year-old might pay around £15 per month for £100,000 of cover, while a 50-year-old could pay approximately £40 per month for the same amount, based on industry data ABI, 2023.
- Health: Lifestyle and health conditions can affect costs. Smokers may pay higher premiums—around £20 per month for £100,000 of cover compared to £10 for non-smokers, according to market trends Statista, 2024.
- Cover Amount: The higher the payout, the higher the premium. For £500,000 of cover, monthly costs might range from £50 to £70, depending on other factors.
- Term Length: Longer terms increase costs. For £200,000 of cover, a 10-year term might cost around £25 per month, while a 30-year term could be approximately £45 per month.
How Spirit Cover Structures Its Policies
A standard life insurance policy in the UK might cost around £38 per month for £152,000 of cover Forbes Advisor UK, 2024. Spirit Cover offers policies at competitive market rates, such as £42 per month for £200,000 of cover for a 45-year-old non-smoker. Here’s what’s included:
- Trust Option: Policies can be placed in a trust at no additional charge, which may help reduce inheritance tax liability—currently set at 40% on estates over £325,000 HMRC, 2023. Trusts are subject to legal and tax rules, and outcomes depend on individual circumstances.
- Additional Benefits: Features like fracture cover and physiotherapy support are included within the standard premium, unlike some traditional policies that may not offer these as standard.
For comparison, a 45-year-old non-smoker might pay £42 per month for £200,000 of cover with a traditional provider, receiving only the payout. With Spirit, the same £42 per month includes the trust option and additional benefits. Costs and features vary by provider, and Spirit’s offerings aim to align with market standards while providing these extras. Always review policy terms to understand what’s covered.
Your Quote, Your Way
No surprises. Share your details, and your Spirit advisor will lock in a price - affordable, trust-smart, packed with care.